CORBANA recommends a nearly 10 percent year-on-year increase in the minimum banana box price

The National Banana Corporation of Costa Rica (CORBANA) wants to raise the fruit’s minimum export prices to better support growers and exporters amid economic, commercial, and pest pressures. 

Based on the latest update of its price model, the organization recommends a 9.91 percent year-on-year increase in the price of an 18.14-kilo box of premium-quality bananas, effectively raising it to $11.15 on an FOB basis.

Image by Corbana

CORBANA updates this model annually to reflect the costs and variables affecting the banana production and export value chain. However, the minimum export price has remained unchanged for the past seven years.

“In the present context, where the exchange rate and weather conditions have worked against us, an increase in the minimum price would provide much-needed support to the industry and enable banana growers to strengthen their competitiveness in the international market,” said Marcial Chaverri, General Manager of CORBANA.

Raising banana prices 

The organization’s model considers variables that, they say, directly affect the industry and its ability to grow and ship the fruit sustainably. 

Among the factors included in the model, CORBANA mentioned the appreciation of the local colón against the US dollar, as well as declining productivity due to abnormal weather that has hit growing regions over the past two years.

Image by Corbana

These pressures are compounded by significant increases in input and service costs throughout the production chain, particularly cardboard boxes, Black Sigatoka control, and bags of fertilizer.

The global banana industry is at a crossroads, and it seems the only way to continue producing sustainably is to raise prices. The fruit is a favorite in many large markets, including the US, but its price has remained relatively stable in recent decades, to the point where economists have labeled it “inflation-proof.” 

Image by Corbana

However, growing operations worldwide have become more and more expensive. Pest pressures, mainly from Black Sigatoka and TR4, have significantly increased costs at the same time that they decimate yields across producing regions, with global leaders, such as Fyffes and Fresh del Monte, calling for a revision of baseline prices. 

*All images by CORBANA | Archive

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